B.

Tech 1st Year English Material

PRINCE

III Unit Risk Management

About the Author: Joe Crampton gives a detailed account in this essay on The Deadly Factory Fires in India Illustrate Need for Stronger Risk Management. He is the VicePresident of Resolver Inc, Canada. Joe has an honours degree in Human Computer Interaction, a combination of psychology and computer science, and continuously applies that perspective to the design and development of Resolvers software solutions. Introduction: Risk Management is a complex task that every company must deal with. Successful risk management plans are born from the creative mind of an individual wellversed in his or her profession, or is it something created by taking a hard look at facts and numbers. India has found itself quickly becoming a major resource center for big corporations around the world. With a huge labor market, many businesses rely on the country as a key component to manufacturing operations. Everyone should be able to work in a safe and healthy workplace. Employers must prepare a policy with respect to workplace safety and maintain a program to implement the policy. Definition: Risk management is a twostep process determining what risks exist in an industry and then handling those risks in a way bestsuited to the objectives of that company. It is the continuing process to identify, analyze, evaluate, and treat loss exposures and monitor risk control to mitigate the adverse effects of loss. Critical Risks in Using Laborers: Using laborers in the country is a critical risk on a number of levels. Clearly there are social issues the use of child labor and sweatshops. Apple Company is facing such problems for manufacturer conditions in China. Another critical issue is safety. Poor worker safety leads to problems in all three core business areas: brand reputation, operational efficiency and revenue. Sivakasi Factory Explosion: Sivakasi in Tamilnadu is considered the fireworks capital of India. There was an explosion at the Om Shakthi Fire Works Factory on 5 September 2012. 34 workers were

P.Raja Rao M.A.(Eng), M.Phil, MBA, (Ph.D.)

B.Tech 1st Year English Material

PRINCE

killed and the factory was destroyed. The heat was so intense that many local villagers were also hurt, and firefighters struggled with the blaze for five hours. Working Conditions in South Asia: According to Business Insider, several factors combine to make death traps of factories across South Asia. In many factories, exits are locked, basements used as storerooms for highly flammable raw materials and no fire escapes installed, while smoke alarms or sprinkler systems are totally not found. In the United States or in other developed countries safety measures are strictly implemented. But the fire services in South Asia are among some of the least developed in the world. Industrial zones in India tend to spread into residential slums presenting dozens of opportunities for catastrophe. Risk Management Monitor reports that in Bangladesh alone, there have been more than 600 factory fire deaths over the last five years. Solutions for Fire Risks: Training and strict procedures will eradicate many possible fires. Use signs and constantly broadcast the dangers to the staff. All electrical equipment should be tested regularly. Ensuring store rooms are keep as tidy as possible will reduce the risk. High degree of supervision with suitable fire fighting equipment. Big Brands and Risk Management Foreign corporations frequently employ manufacturers and factories in foreign countries in an effort to capitalize on inexpensive labor costs. Companies need to utilize the best risk management solutions and practices to ensure they enjoy a profitable relationship with these suppliers. A corporation is able to mitigate losses by frequently assessing and monitoring risks. Employer should take whatever steps necessary to ensure the safety of workers. They should look for those things at work that have the potential to cause harm and identifying the appropriate measures to eliminate and control the risks. Criminal negligence seems to be the cause of factory disasters in India and other countries. India must create a safe work environment in the fabric and textile factories before more fire accidents occur. P.Raja Rao M.A.(Eng), M.Phil, MBA, (Ph.D.)
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